Section 80J relief may be recomputed after final determination of the retrospective amendment's validity.

Relief under section 80J was considered in the context of a retrospective amendment introduced by the Finance (No. 2) Act, 1980. As the validity of that amendment was still pending before the Supreme Court, the law could not be treated as finally settled, and the computation of relief was properly deferred until the final judicial outcome. The Tribunal noted that similar approaches had been accepted by other Benches and approved by the Bombay High Court, and upheld the direction to recompute the relief in accordance with the Supreme Court's eventual decision.

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Issues: Whether the CIT(A) was justified in setting aside the assessment on the allowability of relief under section 80J and directing recomputation in accordance with the final decision of the Supreme Court on the validity of the retrospective amendment.

Analysis: The relief under section 80J was being computed in the context of a retrospective amendment introduced by the Finance (No. 2) Act, 1980. Since the validity of that amendment was then under consideration of the Supreme Court, the law could not be treated as finally settled. The Tribunal also noted that similar views had been taken by other Benches and that the Bombay High Court had approved the course of awaiting the Supreme Court's final decision before giving effect to the relief computation.

Conclusion: The direction of the CIT(A) to recompute the relief in accordance with the ultimate decision of the Supreme Court was upheld.

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